The European Commission on Thursday forecast that the eurozone economy would grow at its fastest pace in a decade this year, with real gross domestic product (GDP) growth predicted to be 2.2 percent.

The autumn forecast is substantially higher than the previous one of 1.7 percent in the spring, but the growth rate will slow slightly in 2018 to 2.1 percent and 1.9 percent in 2019.

"After five years of moderate recovery, European growth has now accelerated," said Pierre Moscovici, the European commissioner for economic and financial affairs, taxation and customs, at a press conference.

The European economy has performed significantly better than expected, mainly due to resilient private consumption, stronger growth around the world, and falling unemployment.

"The EU (the European Union)economy is performing well overall. Economic growth and job creation are robust, investment is picking up, and government deficit and debt are gradually decreasing," said Valdis Dombrovskis, vice-president of the European Commission for the euro and social dialogue.

Within the EU, downside risks relate to the outcome of the Brexit negotiations, a stronger appreciation of the euro, and higher long-term interest rates.

"By contrast, diminishing uncertainty and improving sentiment in Europe could lead to stronger-than-forecast growth, as could stronger growth in the rest of the world," the autumn forecast report said.